Budget 2024-25 Unveiled: Key Highlights on Employment, MSMEs, Tax Reforms, and Infrastructure Boost

The Budget for 2024-25, centered on the themes of Employment, Skilling, MSMEs (Micro, Small, and Medium Enterprises), and the Middle Class, introduces a range of initiatives aimed at bolstering economic growth and addressing key development areas. Here are the significant provisions and changes proposed:

Agriculture and Allied Sectors:

A substantial allocation of ₹1.52 lakh crore has been earmarked for agriculture and allied sectors, underscoring the government’s commitment to enhancing agricultural productivity and rural development.

Financial Support and Schemes:

The budget includes ₹2 lakh crore dedicated to five major schemes, reflecting a strategic approach to fostering economic growth through targeted interventions.

Support for Andhra Pradesh Capital:

A notable provision of ₹15,000 crore has been set aside to support the development of the new capital of Andhra Pradesh, aimed at facilitating its infrastructure and administrative growth.

Employee Benefits:

For first-time employees, a new provision will enable the disbursement of one month's wage in three installments, as recorded in the Employees' Provident Fund Organisation (EPFO). This measure aims to provide financial ease for new entrants into the workforce.

Educational Support:

A significant initiative includes financial support of up to ₹10 lakh for students pursuing studies in domestic institutions, thereby making higher education more accessible and affordable.

Infrastructure Development:

The budget allocates ₹26,000 crore for the development of highways in Bihar, alongside ₹2.66 lakh crore for rural development and infrastructure projects. Additionally, the Pradhan Mantri Awas Yojana will see an expansion with the construction of three crore more houses, addressing housing shortages and improving living conditions.

MSME and Manufacturing Sector Enhancements:

For the MSME sector and labor-intensive manufacturing, several supportive measures are introduced. These include a credit guarantee scheme, collateral-free loans, and an increase in the Mudra loan limit from ₹10 lakh to ₹20 lakh, aimed at promoting entrepreneurial activity and business growth.

Industrial Development:

Twelve new industrial parks have been sanctioned, enhancing the infrastructure necessary for industrial expansion and job creation.

Capital Expenditure:

A substantial allocation of ₹11.11 lakh crore has been designated for capital expenditure, representing approximately 3.4% of the GDP. This allocation is intended to support various infrastructure and development projects across the country.

Flood Mitigation:

A dedicated fund of ₹11,500 crore has been allocated for flood mitigation efforts in Bihar, reflecting the government’s commitment to addressing natural calamities and enhancing disaster preparedness.

Urban Housing:

The PM Urban Housing 2.0 initiative will receive ₹10 lakh crore over the next five years, aiming to improve urban housing infrastructure and provide affordable housing solutions.

Research and Innovations:

A significant investment of ₹1 lakh crore has been allocated for research and innovation, promoting technological advancements and fostering a culture of innovation across sectors.

Fiscal Projections:

The fiscal deficit is projected at 4.9% of GDP, with receipts estimated at ₹32.07 lakh crore and expenditures at ₹48.21 lakh crore. The gross market borrowing target has been set at ₹14.01 lakh crore.

Custom Duties and Taxation Changes:

The budget proposes a reduction in custom duties on gold and silver to 6%, alongside reductions on mobile phones, chargers, and printed circuit board assemblies (PCBA). Long-term capital gains tax will increase from 10% to 12.5%, while short-term capital gains tax will rise from 15% to 20%. Notably, the Angel Tax has been abolished.

New Tax Regime:

The new tax regime introduces revised tax slabs with an increased standard deduction for salaried individuals, now rising from ₹50,000 to ₹75,000. The tax slabs under the new regime are as follows:

- Income up to ₹3 lakh: Nil Tax

- Income from ₹3 to ₹7 lakh: 5%

- Income from ₹7 to ₹10 lakh: 10%

- Income from ₹10 to ₹12 lakh: 15%

- Income from ₹12 to ₹15 lakh: 20%

- Income above ₹15 lakh: 30%

This comprehensive budget seeks to address critical areas of economic development, employment, and social welfare, marking a significant step towards inclusive and sustainable growth.